Vietnam reports record high exports of coffee

Saturday, November 03, 2012 16:08

The Association of Coffee and Cacao of Vietnam (VICOFA) has exported a record 1.5 million tons of coffee, earning nearly US$3.4 billion, a year-on-year increase of 23 percent in volume and 24 percent in value, even though the average value of exports was much lower than last year.

Luong Van Tu, chairman of VICOFA, said this at a meeting held in Ho Chi Minh City on November 2, to review tasks of the last one year. He added that the difference in prices between Vietnam and the rest of the world was $40 per ton and it was $100 a ton in last year.

According to VICOFA, volume of coffee this year fell by 15-20 percent to 1.2 million tons, due to an increase in land of 25-year-old coffee plants which generate lower productivity.

VICOFA currently has more than 100 members representing national corporations, companies, enterprises etc., in production, processing, trade, exports of coffee and cocoa in both Robusta and Arabica varieties.

In related news, with contracts of more than one million tons still left till December, Vietnam can export around 7.5 million tons of rice this year. The country has exported more than 6.4 million tons in the first ten months, earning revenues upto $2.9 billion, far exceeding last year’s volume, according to figures released by the Vietnam Food Association (VFA) on November 2. However, average prices decreased by $40.3 a ton.

Depending on November volumes, total volume for the year can reach 7.7 million tons, said VFA. This is the highest figure in 20 years. However, the come-back of India into the world market will cause difficulties for Vietnamese exporters as Indian rice is priced at $30 a ton.